Tuesday, August 14th 2012
FY2012 Headlines? Revenue of $171.22m (down 7% on the prior corresponding period).
? EBITDA of $18.85m (down 10% pcp).
? NPAT of $11.84m (down 10% pcp).
? Diluted EPS of 12.6 cents (down 10% pcp).
? Final fully franked dividend of 5.5 cents. Total dividend pay?out for the year of 11 cents (up from 8.5 cents pcp).
? Operating cash flow of $26.57m. Ratio of operating cash flow to NPAT of 125% (after adjusting for Tenix one off net receipts).
? Ended June 2012 with 1,133 total staff (down 10 staff pcp). India at 187 resources (up 18 staff pcp).
? Improved Q4 FY2012 performance in most locations across all key metrics - utilisation, sales and staff churn.
? Sales in H2 FY2012 up 27% on the pcp and included an increased level of multi?year deals.
? Finished FY2012 with booked and committed revenue at 43% (42% pcp) of FY2013 full year revenue budget which is targeted at a small increase on the pcp.
? Executed share buyback with 2,088,361 (2.23%) of issued shares purchased up to reporting date.
Australian consulting and I.T. services provider Oakton Limited [ASX: OKN] today announced a full year net profit after tax of $11.84 million for the year ended June 2012 - a 10% decrease on the corresponding full year period. Revenue was down 7% to $171.22 million and EBITDA decreased by10% to $18.85 million.
The Oakton Board declared a fully?franked final dividend of 5.5 cents per share. The total dividend payout for the year is 11 cents (8.5 cents pcp). The dividend will be paid on the 17th September
2012 with a record date of the 31st August 2012.
Neil Wilson, Oakton's Managing Director and CEO, made comment on the result.
"FY2012 has been a challenging year in many respects. Market
conditions across most sectors and locations were soft as the
impacts of international economic pressures were felt
domestically. These pressures led to a large number of
project deferrals and delays by clients which have materially
impacted our trading performance in most locations. As we
indicated at our half year results, the
company decided to hold staff levels (net of attrition) in
anticipation that a number of projects on delay would
recommence in the second half. We are pleased to report that
our second half trading performance in most locations
improved on the first half and that our decision to hold
staff levels was the correct one. Across a number of key
metrics - utilisation, staff turnover and sales ? our
performance in the second half, particularly in Q4, of FY2012
has improved on the first half. We believe this indicates
that our transformation program is now bearing fruit.
The performance of the Victorian operation has progressively
improved during the financial year and this location's key
metrics are now at as expected operating levels in the
context of current market conditions. As expected, the normal
cycle of increased demand leading up to the end of the
financial year enabled ACT to significantly improve its
performance in the second half of the financial year.
Additionally the pipeline of future work in this location is
strong. Both NSW and QLD had improved performances in the
second half; however market conditions in both these
locations remain challenging. We are pleased to report that
we have established a new operating location in
Perth where opportunities for growth in both Resources and
Government sectors are strong. During the second half, we
secured a large, multi?year managed services engagement with
a multi?national mining company.
Overall, we remain confident that the strategic direction
taken by Oakton over the last few years to become a
project/outcome and managed services based specialist
consulting and I.T. services company, delivering growth
through depth and specialisation continues to gain traction.
Consistent with this strategy our Hyderabad (India) office
continues to provide access to skills at a lower cost than is
otherwise available domestically. During the year over $57m
of work was retained and/or won where the ability to off
shore components of these projects was critical to our
success. We see our business model becoming increasingly
relevant given the current volatility of the market and the
continuing drive from our clients to get "more for less" from
a range of specialist providers rather than the large "do
everything" global players.
Again, our strong cash flow management has enabled us to
maintain our dividend pay?out, eliminate our debt and provide
support for continued organic expansion and shareholder
returns.
We are also able to advise that the level of booked and
committed revenue is now at a level that is in line with last
year. This is a result of a very strong sales performance in
the second half of FY2012 where total sales were up 27% on
the prior corresponding period.
I would like to take this opportunity to thank our
outstanding team at Oakton in both Australia and India for
their contributions in what has been a difficult year. We
have the best team to enable us to continue on our growth
strategy in the future. I would also like to thank our
clients, shareholders and the wider investment community for
their on?going support and interest in our company"
Oakton will hold its Annual General Meeting on Wednesday 21 November 2012 at 10am in its
Melbourne Offices, Level 8, 271 Collins Street, Melbourne.
Further information:Neil Wilson
Managing Director and CEO
John Phillips
Chief Financial Officer
Tel: +61 3 9617 0200
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